9,000 Galway homeowners now struggling with mortgage debt

Around 9,000 struggling homeowners across Galway are in arrears on their mortgages, with an increasing number prioritising utility and grocery bills.

And a warning has been issued to those in arrears or restructuring their mortgages that if they die, they face the prospect of leaving their families ‘saddled’ with debts, or even repossessions.

Estimates provided to the Connacht Tribune – based on Central Bank statistics – suggest there are almost 9,000 households in Galway in arrears of more than 90 days, have restructured their loans, or have ‘delinquent’ payments of less than 90 days.

A breakdown of the figures estimates that 3,900 of these households are over 90 days in arrears, with the average arrears totalling €28,000 and around €200,000 outstanding on their mortgage.

While restructuring mortgage debt allows short-term flexibility, a leading life assurance company has warned of potential consequences of these increased costs.

Mortgage protection life cover is designed to clear the balance of the homeloan in the event of a death – but this doesn’t cover additional costs incurred through defaulting  and restructuring.

Because many of the 9,000 householders will not have updated their mortgage protection policies, if they die, the entire amount outstanding will not be cleared, and the family home could face repossession by the bank.

See full story in this week’s Connacht Tribune.